How much is my website worth?

Discussion in 'Articles & Tutorials' started by bizbroker24, Sep 15, 2012.

  1. bizbroker24

    bizbroker24
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    We get this question from prospective clients everyday. The truth is every website is different. So the honest answer to this question is always “It depends…”

    It depends on many factors that need to be analyzed very carefully such as:

    - Sales and Profit numbers and trends
    - Traffic numbers and trends
    - Age of the business
    - Domain name value
    - Industry sector trends and outlook
    - Business growth potential
    - Proprietary or non-proprietary products
    - Unique content
    - Inventory count (if applicable)
    - Advertising methods and costs
    - Personnel expertise needed to operate the business
    - Seller financing
    - Non-compete terms
    - … and so much more!

    So as you can see, nobody can give you an accurate website appraisal or website valuation based on just scanning your website pages. No-one knows what your website is worth until they’ve studied it in-depth.

    Yes, there are website valuation sites out there that try to provide a specific dollar number. You enter your website URL and a few seconds later, they estimate your Traffic, Sales, and Website Value. It is always incorrect. Use these website valuation tools for fun and nothing else.

    Have a professional website broker study your website business in detail and then place an estimated value on your website. This estimate will be based on real data and information as well as the broker’s experience.

    And a professional estimate always takes the buyer’s Return on Investment into consideration. Because utimately, your website is worth whatever a buyer is willing to pay for it. Show the buyer how he can get a good ROI and that buyer will comfortably pay your asking price.


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    Website Broker/Domain Brokerage
    +1 (786) 350 1560
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    Skype- bizbroker24
    http://www.bizbroker24.com
    Bizbroker24- We Sell Money Making Web Properties
     
  2. Fergal

    Fergal
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    bizbroker24 how much does it normally cost a website owner to have a professional valuation done?
     
  3. noreturn

    noreturn
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    Well if you sell online buisness should you know how much it is worth? haha

    Also how much traffic etc depends how much traffic your site is getting, etc.

    By the basic of just browsing over your site I can tell the following:
    You dont have very good SEO
    It is a fairly new site
    There is no logo
    But has a really professional design

    I think if you were to sell it to someone who really wanted to buy it I think you could get anywhere from $500-$1000. If you keep working at it I could see the value of the site going up over time.

    But I am just confused if you sell online business why do you need this review?
     
  4. MarkTaylor

    MarkTaylor
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    Great post Bizbroker... an interesting challenge. I think it could get very complicated if all the stats are taken into account. My instinct would be a calculation based solely on earnings - the same method(s) you would use to value a business. The two methods that spring to mind are:

    1. A multiple (3 or 4) of the average earnings over the past 3 years; Or, if you are more aggressive / bullish...
    2. The Net Present Value of projected future earnings (provided they are well substantiated).

    Both methods can be controversial, but smart companies will gladly pay for strong cash generation and earnings.

    Any thoughts?

    M.
     
  5. bizbroker24

    bizbroker24
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